Ruble is strengthening after collapse
2022.12.26 06:43
Ruble is strengthening after collapse
Budrigannews.com – In a volatile session on Monday, concerns about the impact of oil and gas sanctions on Russia’s export revenue led to a sharp increase in the Russian rouble, which recovered some ground from its largest weekly decline since early July.
After an oil embargo and price cap went into effect, the rouble lost about 8% the week before and is down over 10% this month. According to the finance ministry, the recent drop was caused by rising imports.
The rouble was up 2.8% against the dollar at 68.31 by 0748 GMT. It strengthened by 2.1% against the yuan to 9.71, and it was up 4.4% against the euro at 72.4.
Otkritie Research said in a note that trading is likely to be light on Monday because the rouble could strengthen during the ongoing month-end tax period, when Russian exporters typically use their foreign exchange earnings to pay their local debts.
Despite the fact that capital controls and reduced imports have supported the rouble’s performance against the dollar this year, it has lost the top spot to Brazil’s real in the past week.
In its final trading session before the Christmas break,, a global benchmark for Russia’s primary export, reached $84.0 a barrel, up 3.7%.
Sinara Investment Bank said that investors are likely to rebalance their portfolios in the last week of the year, which could cause the market to move in either direction.
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The MOEX Russian index, which is based on rouble, was up 0.3 percent to 2,130.6 points, while the dollar-denominated RTS index was up 2.1 percent to 983.4 points.
